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BCE Inc (BCE): Will it Disappoint Investors in Q4 Earnings?
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Leading Canadian telephone operator BCE Inc. (BCE - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 2, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 1.45%. However, the company’s earnings lagged the Zacks Consensus Estimate in two quarters prior to the last reported quarter. The four-quarter average is thus a negative surprise of 1.57%.
Over the past three months, BCE gained 0.9% while the Zacks categorized Diversified Comm Services industry witnessed a loss of 3.00%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Past Quarter
We are impressed with BCE’s efforts to strengthen itself in the field of advanced networks Fibe TV and Fibe Internet services and in the hosting and cloud platform.
BCE’s subsidiary, Bell Canada, rules the Canadian broadband communications market through the launch of Home Hub 3000 WiFi services with Wireless 4K Whole Home PVR from Fibe TV. Increasing deployment of Gigabit Fibe, 4G LTE mobile networks, IP phone services and post-paid businesses have helped the company gain customers and also put a check on churn. BCE’s acquisition of Q9 Networks has strengthened its foothold in the cloud space. The company also continues to invest in LTE, broadband and fiber to provide additional capacity on Internet and wireless networks.
BCE’s wireless segment benefited from its post-paid business and robust activities as it continued to enjoy solid subscriber addition. Significant investments in network coverage, customer retention, lucrative data plans and the launch of new handsets along with the provision of net protection drove customer addition.
However, BCE continues to face multiple headwinds. Stringent regulatory measures, loss in network access services lines, price competition, labor union issues, collective bargaining agreements leading to work disruptions, higher labor costs, operational risks and construction delays are some of the major concerns. In the wireless segment, BCE competes against the likes of Rogers Communications Inc. (RCI - Free Report) and TELUS Corporation (TU - Free Report) as well as small regional carriers in Canada.
Earnings Whispers
Our proven model does not conclusively show that BCE is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: BCE has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:BCE has a Zacks Rank #4 (Sell).
We caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
CenturyLink’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 9.02%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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BCE Inc (BCE): Will it Disappoint Investors in Q4 Earnings?
Leading Canadian telephone operator BCE Inc. (BCE - Free Report) is scheduled to report fourth-quarter 2016 results on Feb 2, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 1.45%. However, the company’s earnings lagged the Zacks Consensus Estimate in two quarters prior to the last reported quarter. The four-quarter average is thus a negative surprise of 1.57%.
Over the past three months, BCE gained 0.9% while the Zacks categorized Diversified Comm Services industry witnessed a loss of 3.00%.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Past Quarter
We are impressed with BCE’s efforts to strengthen itself in the field of advanced networks Fibe TV and Fibe Internet services and in the hosting and cloud platform.
BCE’s subsidiary, Bell Canada, rules the Canadian broadband communications market through the launch of Home Hub 3000 WiFi services with Wireless 4K Whole Home PVR from Fibe TV. Increasing deployment of Gigabit Fibe, 4G LTE mobile networks, IP phone services and post-paid businesses have helped the company gain customers and also put a check on churn. BCE’s acquisition of Q9 Networks has strengthened its foothold in the cloud space. The company also continues to invest in LTE, broadband and fiber to provide additional capacity on Internet and wireless networks.
BCE’s wireless segment benefited from its post-paid business and robust activities as it continued to enjoy solid subscriber addition. Significant investments in network coverage, customer retention, lucrative data plans and the launch of new handsets along with the provision of net protection drove customer addition.
However, BCE continues to face multiple headwinds. Stringent regulatory measures, loss in network access services lines, price competition, labor union issues, collective bargaining agreements leading to work disruptions, higher labor costs, operational risks and construction delays are some of the major concerns. In the wireless segment, BCE competes against the likes of Rogers Communications Inc. (RCI - Free Report) and TELUS Corporation (TU - Free Report) as well as small regional carriers in Canada.
Earnings Whispers
Our proven model does not conclusively show that BCE is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: BCE has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:BCE has a Zacks Rank #4 (Sell).
We caution against Sell-rated stocks (Zacks Ranks #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
BCE, Inc. Price and EPS Surprise
BCE, Inc. Price and EPS Surprise | BCE, Inc. Quote
Stock to Consider
Here is a company that has the right combination of elements to post an earnings beat this quarter.
CenturyLink Inc. , with an earnings ESP of +1.79% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
CenturyLink’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 9.02%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>